The two bathrooms are tiny and have no sinks.

Not too far from Hollywood, I had looked at some places there but they were all on the main highway, in very old buildings and small tiny rooms.

We can't approach this Demographic with a cookie cutter Real Estate solution but rather customize a solution for first time home buyers with lease option, house hacking, and building micro/tiny homes etc..

Buying a home would require planning which millennials are incapable of doing and unwilling to do because they do not believe in the future, they only live for today.This is the same generation that, when they do get a twinge of motivation, research buying tiny homes, basically glorified overpriced RV trailers that they have no place to park and 5 years from purchase will be worth only half what they paid. 

When I met my husband he lived in an old, tiny , did I mention OLD townhome rental.  

I think we will see downward trends in prices of homes and maybe a tiny drop in rental prices. 

Organizing the stuff in the local food pantry, Habitat for Humanity, literacy volunteer (helping to teach somebody to read for an hour) are eeeasy examples of things that are in every tiny town everywhere.

Aaron if buying this would put most of your money into this asset that would be a NO.If buying this property only takes a very tiny amount of your overall liquidity and it doesn't work out then you could possibly take a tax write off on the losses.If this is your jumping off point for investing you do not want to do that with a D property.If the quality properties are at 1% of rent to sales price in good area then you need to look for a value add property in that area that you can buy for a good price and through rehab and lease up get the rent ratio closer to 1.5 to 2%.

In that case maybe 2 teeny tiny units and prayer.

Most grouts have a latex additive anyways which will keep them just flexible enough for tiny movement.